Line of Credit and Long-Term Debt

12 Months Ended

Feb. 28, 2018

Note 3. Line of Credit and Long-Term Debt

The Company has a $0.5 million line of credit with the Brand Banking Company with a current balance of $0.2 million at February 28, 2018. The line matures on June 30, 2018, is personally guaranteed by the Chief Executive Officer and has an interest rate of LIBOR plus 3.75%. The Company was in violation of certain financial covenants related to the line of credit at February 28, 2018 and has obtained a debt covenant waiver. The Company is currently in discussions to amend its line of credit.

The only other commercial debt of the Company is $0.1 million it owes on a building owned by its subsidiary, Teltron Technologies, Inc. in Birdsboro, PA.

The Company had outstanding margin account borrowing of $0.1 million as of February 28, 2018 and $0.1 million as of February 28, 2017. The margin account borrowings are used to purchase marketable equity securities and are netted against the investments in the balance sheet to show net trading investments. The gross investments as of February 28, 2018 were $0.3 million leaving net investments of $0.2 million after the margin account borrowings of $0.1 million and were gross investments were $0.5 million leaving net investments of $0.4 million after the margin account borrowings of $0.1 million as of February 28, 2017. The margin interest rate is 2%.

Long-term debt consisted of the following (in thousands):


	February 28, 2018			February 28, 2017
Mortgage payable to bank; interest rate at BB&T Bank base rate plus 0.5% (5.00% as of February 28, 2018); monthly principal and interest payments of $5 thousand payable through October 2021; collateralized by land and building of Teltron Technologies, Inc.	$	78		$	131

		78			131
Less current maturities		(55	)		(54	)

		23		$	77

Future maturities of debt pertaining to the note with BB&T are as follows (in thousands):


Year	Amount
2019	$	55
2020		23

	$	78